7/27/23 – First Time Buyer Credits!

With the California Dream for all on the shelf until next year, I always get the question about first-time buyer loan programs! Fannie and Freddie have put an excellent program together for first-time buyers making under $126,240.00, and we can manipulate it by not using overtime, taking a spouse’s income off the loan, or not counting bonuses to help people take advantage of this.

So, how does this work? If you are a first-time buyer and make less than $126,240 in Los Angeles County (varies by County), then you are not subject to any LLPA’s Loan level price adjustments. The condo hit .75 points – gone! The hit for having a credit score under 800 is gone! In this case, if you are putting 5% down with a 640 credit score, you will have a better rate than a person putting 20% down with an 800 credit score. The interesting part is that very few broker banks (none I know of) pass the savings on to the buyer or Loan Officer if a loan is being brokered with the above scenario. Wholesale brokers run their businesses on thin margins, and then they make up for it when they can, and that makeup happens on 1st-time buyers.

Here is a little closer look based on today’s rates:
1st-time buyer making $126,400.00 or less – 5% down – 30-year fixed with 5% down and a 640 credit score – 6.750% 1 point or 7.125% 0 points

1st-time buyer making over $126,400.00 – 5% down – 30-year fixed with 5% down and a 640 credit score -6.75% = 3.5 points or 7.125% 2.6 points

Buyer making over $126,400.00 – 5% down – 30-year fixed with 5% down and an 800 credit score -6.75% = 1.75 points or 7.125% .750 points.

There are first-time buyer credits, but they are income restricted. These will NOT happen with your local broker, but your local banker (Augusta Financial) will do these all day long!!!

The Fed raised rates by .250% yesterday, and then the GDP number came out this AM and pushed rates a little higher! I keep telling myself that it is never as bad as it seems and never as good as it was two years ago, so let’s stay positive!

• 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
• We do loans in all states, so call me with anything you need.  
• Government Loans (FHA / VA) are in the high 5’s and low 6’s.
• Conventional Loans up to $726,200.00 are in the low to mid 6’s and low 7’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the 6’s and 7’s
• Jumbo loans above $1,089,300 are in the 6’s and 7’s
• Bank statement loans - They are available with 10% down again! 7’s and 8’s + depending on down and credit score.
• No income qualifier – 20% down with reserves! In the 9’s!
• 0 down loans are in the mid to high 6’s – 660 credit score min right now, up to $740,000.00.
• Private Money lenders - hard Money Loans – 35% down!
• No Ratio Loans 30% down
• Debt Service Coverage loans with as little as 25% down
• Bridge Loans - are typically 7.99% with limited fees – But they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until 2024!
• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I am around all weekend if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!